A hot demand for the US dollar for higher import payments causes the Bangladesh Taka (BDT) to tumble further as the local currency Tuesday depreciated by 50 paisa against the greenback.
The local currency lost its value by 50 paisa on the inter-bank foreign-exchange (forex) market on the day under import-payment pressures, according to market operators.
The US currency was quoted at Tk 93.45 each on the day against Tk 92.95 on the previous working day. It was Tk 92.80 on June 16.
"The local currency has depreciated further against the US dollar in line with the market requirement," Md Serajul Islam, a Bangladesh Bank (BB) spokesperson, told the FE while explaining the latest situation on the forex front amid an ongoing global crunch time.
In the meantime, the local currency lost its value by Tk 7.65 or nearly 9.0 per cent since January 2022. The dollar traded at Tk 85.80 on January 08 last.
The same day, the exchange rate of the taka also depreciated similarly against the greenback at customers' level for settling import payments.
The US dollar was quoted at a maximum of Tk 93.50 each for the sale of bills for collection, generally known as BC, on the day against Tk 93.00 of the previous level.
"We re-fixed the BC selling rate at maximum Tk 93.50 on the day against Tk 93.00 of the previous level in line with the central bank's advice," a senior treasury official at a leading commercial bank told the FE while explaining the situation.
Some banks, however, traded the US currency between Tk 96.50 and Tk 98.50 for settling import-payment obligations of their customers, according to the operators.
On the other hand, the banks also quoted the dollar at maximum at Tk 92.50 on the day to remitters as well as realised export proceeds or telegraphic transfer (TT) clean of their funds against Tk 92.00 of the previous working day.
They also said cash dollar also traded at Tk 97.70 on the day against more than Tk 98.00 of the previous working day at the open market, commonly known as kerb market.
Actually, the local currency is maintaining a depreciating trend - mainly due to higher outflow of foreign exchange - following a hefty growth in import payments amid global price rises, compared to the inflow in the last few months.
The mismatch has resulted in widening current-account deficit in a macroeconomic imbalance that prompts the government to adopt some thrift measures and put baits on offer for netting foreign exchange to secure the depleting reserve.
"We've to move gradually to adjust the mismatch and the central bank is rightly attempting that," Dr Shah Md. Ahsan Habib, Professor at the Bangladesh Institute of Bank Management (BIBM), told the FE in reply to a query.
Talking to the FE, Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank Limited, said the central bank may consider a fresh measure to manage the volatility on the forex market.
"Depreciation of the local currency will help boost export earnings as well as remittance inflow," the head of treasury at a leading private commercial bank (PCB) said.
"But imports will be costlier in the near future following such depreciation of the local currency against the US dollar," the private banker added. "It may fuel inflationary pressure further on the economy."
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